Trump's Greenland Threats Spark $750 Billion S&P 500 Slump

Topline The S&P 500 slid as trading opened Tuesday, shedding roughly $750 billion in wealth in recent days as President Donald Trump intensified his push for U.S. control over Greenland, as one economist noted the broader market losses equaled the value of the Danish territory. Key Facts How Much Would It Cost The U.s. To Buy Greenland? The price tag for Greenland could be as high as $700 billion should Trump and the U.S. move forward with buying the country, NBC News reported, citing three people familiar with the cost estimate. Secretary of State Marco Rubio has reportedly been told to draft a proposal to purchase Greenland, despite officials from Denmark and Greenland rejecting Trump’s push to acquire the country, according to an unnamed White House official. It wouldn’t be the first time the U.S. had considered submitting an offer for Greenland. The State Department floated acquiring the Danish territory in the 1860s under President Andrew Johnson, and later, in 1946, offered $100 million under then-Secretary of State James Byrnes. Surprising Fact The Cboe Volatility Index, a reading referred to as Wall Street’s “fear gauge” which tracks implied stock movements over the next month on the S&P 500, surged Tuesday to its highest level since November. The index, or VIX, and the S&P 500 typically move in opposite directions, and the VIX skyrocketed in April 2025 after Trump announced his “Liberation Day” tariffs on U.S. trade partners. Key Background Trump escalated his push for the U.S. to acquire Greenland early in his second presidency after some effort in his first term, though his rhetoric has accelerated in recent weeks. He has argued the U.S. should take control of Greenland on national security grounds and recently claimed China and Russia have sought control of Greenland, a mostly autonomous territory of Denmark. Danish and Greenlandic officials have rejected Trump’s proposals numerous times over the last year, including Danish Foreign Minister Lars Rasmussen, who said in March 2025 that Trump’s rhetoric is “not how you speak to your close allies.” Danish Prime Minister Mette Frederiksen told Trump in January 2025 that Greenland is “not for sale,” and Frederiksen has warned that NATO would no longer exist if the U.S. were to attack Greenland, and “therefore post-second world war security.” Further Reading ForbesWall Street’s ‘Fear Gauge’ Spikes To Highest Level Since November As Trump Escalates Greenland Threats